The federal government is about to strike a sweeping new agreement with ANZ to ensure it does not join the exodus of banks from the Pacific.
The treasurer told the Australian Institute of International Affairs that the government is about to strike a deal with ANZ Bank to secure its "continuing banking presence in the Pacific".
But like many Western banks, it has struggled to implement tough new international banking standards in the Pacific, while struggling with low profitability across its network, leading it to close more than 10 branches there in the last five years. "This will ensure ANZ's nine existing operations — from Fiji to the Cook Islands — maintain their services," he said.
The looming deal is a key part of a broader government push to arrest a decline in banking services across the Pacific. It is also been working with the United States government and multilateral institutions such as the World Bank to help Pacific nations deal with the rapid drop in correspondent banking ties — including through providing funding to improve digital infrastructure and law enforcement.The Bank of China is on the brink of establishing a branch in Port Moresby, a move that is being watched closely by the Australian government.
"While it's important that each country charts its own course, this can create costs for businesses that want to operate across the region."
Jim Chalmers Fiji Cook Islands Australian Institute Of International Affairs Chinese Banks ANZ Bank ANZ Bank Pacific The Bank Of China Australian Banks In The Pacific
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